The Death of Contingency Recruitment in the Automotive Industry

As the automotive industry faces unprecedented transformation, we're noticing that many of the traditional recruitment methods are being scrutinised. Contingency recruitment, in particular, is increasingly seen as a flawed approach to hiring top talent and is leading to a race to the bottom in terms of value and candidate quality. This trend is contributing to high staff turnover and lowered customer experience.

Why contingency recruitment is failing, and why RETAINED recruitment could be the answer...

1. High Cost of Failure: The average first-year attrition rate in the automotive sector is around 35% for contingency hires, compared to just 7.5% for retained recruitment. Poor hires incur costs exceeding twice the leaver’s annual salary due to lost productivity and rehiring expenses.
2. Time Inefficiency: Contingency recruiters often juggle multiple roles, limiting the time and effort spent on each placement. In contrast, retained recruiters dedicate substantial resources to understanding and fulfilling the client's needs, leading to better candidate matches.
3. Limited Expertise: Internal teams may lack the experience to effectively screen for senior roles, resulting in poor hiring decisions. Retained recruiters, with their industry-specific focus, offer deeper candidate assessments and more relevant shortlists.
4. High Stakes: Leadership roles carry significant risks if filled incorrectly. Retained recruiters mitigate this by ensuring candidates not only possess the right skills but also align with the company’s culture and values.

The shift to RETAINED recruitment agencies ??

Automotive companies are increasingly turning to retained agencies, like Automotive Recruiters, for several reasons:

• Improved Quality of Hires: By focusing on cultural fit and long-term potential, we're able to reduce turnover and enhance team cohesion.
• Dedicated Attention: With a smaller client load, our retained team can offer personalised and thorough search processes.
• Strategic Expertise: We bring industry-specific knowledge and a deeper understanding of market trends and candidate expectations.

In conclusion, the shift towards retained recruitment reflects a strategic move by automotive companies to secure top talent efficiently and effectively. By moving away from the contingency model, these organisations can focus on long-term growth and stability, ensuring better outcomes for both employees and customers.

If you're using contingency agencies at the moment and are open to exploring the benefits of retained support, send me a message or check out our website - www.automotiverecruiters.co.uk